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This paper surveys the literature on monetary policy at the zero lower bound on nominal interest rates. Certain crucial insights regarding expectations have been neglected in recent research in this field. Taking this into account, the interactions between demand and supply shocks appear crucial...
Persistent link: https://www.econbiz.de/10005106759
The overall costs of the payment system to society are considerable. These costs depend on the relative usage of the available payment instruments, which differ in the costs that each entails to market participants in the payment chain. In the Netherlands, debit card payments have become less...
Persistent link: https://www.econbiz.de/10010945593
burden of the banking sector is modest. We model a regulator whose trade-off between bank risk and credit supply is derived … has through bank incentives. The larger the correlation between banks' projects, the more important the role for monetary … policy. In a dynamic setting, not internalizing bank risk leads a monetary authority to keep rates low for too long after a …
Persistent link: https://www.econbiz.de/10008774017
Measuring bank performance solely on the basis of profitability conveys significant information about past performance … criteria: (i) profitability; (ii) risk; (iii) market power, and (iv) efficiency. We use this scorecard to compare the …
Persistent link: https://www.econbiz.de/10010562428
issue concerns possible limits to transparency. In an independent central bank that strives to be accountable and to …
Persistent link: https://www.econbiz.de/10005101829
) the collateral's amount and use and 5) bank run signs. This information can be used both for monitoring the TARGET2 …
Persistent link: https://www.econbiz.de/10009292423
This paper develops a methodology, based on Furfine (1999), to identify unsecured interbank money market loans from transaction data of the most important euro processing payment system, TARGET2, for maturity ranging from one day (overnight) up to three months. The implementation has been...
Persistent link: https://www.econbiz.de/10010757281
We analyse the relationship between tail risk and crisis measures by governments and the central bank. Using an … the central bank and the governments is less binding if the risk of contagion is high. The strategic interaction between … governments and the central bank also influences the effectiveness of the interventions. A joint effort of both the governments …
Persistent link: https://www.econbiz.de/10010583805
This paper investigates how changes in the monetary policy framework have affected the overnight money market lending rate for the Dutch segment of the euro area during tranquil and crisis times. We present an EGARCH model on the volatility of the overnight lending rate. The results show that...
Persistent link: https://www.econbiz.de/10011004570
This paper examines which economic, fiscal, external, financial, and institutional characteristics of countries affect the likelihood that they adopt inflation targeting as their monetary policy strategy. We estimate a panel binary response transition model for 60 countries and two subsamples...
Persistent link: https://www.econbiz.de/10009367173